Paper Paperboard Packaging Market

The increasing emergence of the e-commerce sector is driving the market growth.

Market CAGR for paper and paperboard packaging is being driven by the growing emergence of the e-commerce sector has played a vital role in the growth and expansion of the paper and paperboard packaging market. E-commerce companies widely use corrugated packaging for secondary and tertiary packaging because of its low cost and lightweight nature. Additionally, increasing sustainability problems of plastic materials are compelling e-commerce companies to replace plastic packaging with paper packaging, which is expected to drive market growth during the forecast period. Paperboard packaging offers eco-friendly protection and visual appeal, making it a sustainable choice for product presentation.

Furthermore, the growing regulations on non-biodegradable materials in several regions have also led to the expansion in demand for paper & paperboard paper & paperboard packaging in these regions. Thus, recycling is a driver for the industry's growth as consumers are increasingly inclined towards using recycled and eco-friendly products.

Firms that provide paper and paperboard packaging solutions are enhancing their delivery beyond core products to include consulting services for end users to assist them in choosing the most impactful packaging solution for their requirements. Such a strategy is needed partly owing to the standard paper and paperboard manufacturing industry's growth. Fruits, vegetables, meat, ice cream, and other foods are sealed in paper and paperboard packaging in the food sector.

Paper and paperboard packaging are utilized in the beverage industry to package milk, juices, and other drinks, whereas it is utilized in the healthcare industry to package pharmaceutical items, and other medications.

For instance, in May 2022, McDonald's and Deliveroo committed to a new, long-term worldwide strategic relationship, expanding on their current agreement to provide consumers and McDonald's franchisees with the convenience and value of McDelivery in markets worldwide via the Deliveroo platform. The collaboration between McDonald's and Deliveroo would help build the McDelivery business and promote both companies' commitment to providing a seamless customer experience.

WestRock Company was successful in completing its transaction by acquiring all residual shares held by Grupo Gondi at a cost of $970mn plus assuming debts. These include four paper mills, nine corrugated paper plants, and six high-end graphics sites situated in Mexico. This further solidifies WestRock’s position in Latin America’s dynamic markets, covering consumer goods like kitchen rolls, paper boards, and cardboard for packaging.

The rise of e-commerce is a significant driver for the Global Paper and Paperboard Packaging Market Industry. As online shopping continues to expand, the demand for packaging solutions that ensure product safety during transit is paramount. In 2024, the market is anticipated to reach 223.7 USD Billion, largely fueled by the need for durable and protective packaging. Companies are investing in innovative designs that enhance user experience while minimizing waste. The e-commerce sector's growth is expected to sustain a compound annual growth rate of 4.36 percent from 2025 to 2035, further bolstering the market.

Shifting consumer preferences are influencing the Global Paper and Paperboard Packaging Market Industry. There is a noticeable trend towards packaging that reflects brand values, particularly in terms of sustainability and aesthetics. Consumers are increasingly favoring products with minimalistic and eco-friendly packaging designs. This shift is expected to drive the market's growth, with projections indicating a value of 357.8 USD Billion by 2035. Companies are responding by innovating their packaging strategies to align with consumer expectations, thereby enhancing brand loyalty and market share.

Regulatory compliance plays a crucial role in shaping the Global Paper and Paperboard Packaging Market Industry. Governments worldwide are implementing stringent regulations to reduce plastic waste and promote sustainable packaging practices. For instance, the European Union has introduced directives aimed at minimizing single-use plastics, which has led to increased demand for paper-based alternatives. This regulatory landscape is likely to propel the market's growth, with an expected value of 357.8 USD Billion by 2035. Companies are adapting to these regulations by investing in compliant packaging solutions, thereby enhancing their market position.

The Global Paper and Paperboard Packaging Market Industry is poised for substantial growth, with projections indicating a market value of 223.7 USD Billion in 2024 and an anticipated increase to 357.8 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 4.36 percent from 2025 to 2035. Factors contributing to this expansion include rising demand for sustainable packaging solutions, the growth of e-commerce, and increasing regulatory pressures. The market's evolution reflects broader trends in consumer behavior and environmental awareness, positioning it as a dynamic sector in the global economy.

The Global Paper and Paperboard Packaging Market Industry is increasingly driven by sustainability initiatives. As consumers become more environmentally conscious, companies are adopting eco-friendly packaging solutions. This shift is reflected in the growing demand for recyclable and biodegradable materials. For instance, major brands are committing to using 100 percent recyclable packaging by 2025. This trend is expected to contribute to the market's growth, with projections indicating a market value of 223.7 USD Billion in 2024, as businesses align their practices with sustainability goals.

Technological advancements are transforming the Global Paper and Paperboard Packaging Market Industry. Innovations in production processes, such as digital printing and automation, are enhancing efficiency and reducing costs. These technologies enable manufacturers to produce customized packaging solutions that meet specific consumer needs. As a result, the market is projected to grow significantly, reaching 223.7 USD Billion in 2024. Furthermore, advancements in materials science are leading to the development of stronger and lighter paper products, which could further drive market expansion in the coming years.

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American paper and paperboard packaging market will dominate due to increasing environmental concerns, and the adoption of stringent regulations regarding the use of plastic and other non-recyclable packaging materials will boost the market growth in this region. Further, the US paper and paperboard packaging market held the largest market share, and the Canadian paper and paperboard packaging market was the fastest-growing market in the North American region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: PAPER AND PAPERBOARD PACKAGING MARKET SHARE BY REGION 2022 (USD Billion)

Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

Europe's paper and paperboard packaging market accounts for the second-largest market share due to the growing concerns about rising pollution levels caused by non-recyclable and non-biodegradable packaging solutions have accelerated the market growth in this region. Further, the German paper and paperboard packaging market held the most extensive market share, and the UK paper and paperboard packaging market was the fastest-growing market in the European region.

The Asia-Pacific paper and paperboard packaging is expected to grow at the fastest CAGR from 2023 to 2032. This is due to strong economic growth, and rising consumption of packaged food products drives the market growth in this region. Moreover, China’s paper and paperboard packaging market held the largest market share, and the Indian paper and paperboard packaging market was the fastest-growing market in the Asia-Pacific region.

Feb 2023: ProActive Recyclable Paper-1000, the newest product in the ProActive Recyclable family, has been introduced by ProAmpac, a pioneer in flexible packaging and material science. The first in a line of new curbside recyclable paper-based packaging solutions, Recyclable Paper (RP)-1000 is heat-sealable, has a good moisture barrier, and has great directional tear qualities. RP-1000 is a suitable alternative to typical multi-material laminates that are not environmentally friendly for frozen food applications, such as vegetables and ready-to-eat meals. Some dry foods and secondary packaging uses, such as confectionery, can also be accommodated by the RP-1000.

RP-1000 is pre-approved for curbside recycling and is recyclable in both paper and mixed streams.

Leading market players are investing heavily in research and development to expand their product lines, which will help the paper and paperboard packaging market grow even more. Market participants are also undertaking numerous trategic activities to expand their footprint, with important market developments including new product introduction, contractual agreements, higher investments, mergers and acquisitions, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, paper and paperboard packaging industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the paper and paperboard packaging industry to benefit clients and increase the market sector. Key players in the paper and paperboard packaging market, including Amcor Ltd. (Australia), ITC Ltd. (India), Cascades Inc. (Canada), RockTenn Company (U.S.), Clearwater Paper Corporation (U.S.), and others, are attempting to increase market demand by investing in research and development operations.

WestRock Co is a major provider of paper and packaging solutions. It manufactures and sells containerboard and paperboard products such as folding cartons, bleached paperboard, coated recycled paperboard, retail displays, and pulp products. WestRock also provides kraft paper and pulp, recycled linerboard, coated white top liner board and corrugated containers. The company's products are available in various industries such as retail, food, healthcare, beverage, commercial printing, tobacco, home and garden. WestRock also undertakes developing and selling land holdings in South Carolina, the US.

In September 2022, WestRock Company acquired an HP PageWide T1190 Press to complement and enhance its portfolio of corrugated printing capabilities. The HP PageWide T1190 Press is expected to enable WestRock to disrupt the corrugated packaging supply chain and deliver superior value to its customers.

Nippon Paper Industries Co Ltd is a manufacturer of paper and related products. Its portfolio includes a wide variety of paper, paperboard, processed paper products, household paper products, lumber, wood products and construction material, chemical products, and functional materials. The firm also offers services such as civil engineering, warehousing and transportation. NPI manages the sports and leisure business, which operates sports clubs and leisure facilities, such as ski areas, bowling alleys, and golf courses. It serves food and beverages, healthcare, construction and real estate, consumer packaged goods, and leisure and entertainment markets.

In April 2022, Nippon Paper Industries Co., Ltd and Elopak ASA agreed that Nippon Paper Industries Co., Ltd would produce and sell Elopak ASA's lineup of Pure-Pak packaging for beverage and liquid food products across the world and introduce them to the Oceania region.Mondi created a cutting-edge cooler bag for consumers to transport frozen or chilled foods last December 2022 in collaboration with FRESH!PACKING. The Fresh! The bag’s outer layer is made completely of solid kraft paper from Mondi, which replaces multi-material non-recyclable packaging that was formerly used while increasing cooling protection by up to 2.5 times.

The bag's cooling part is produced from pulp and wrapped in Mondi's kraft paper, certified as fully recyclable within Europe's existing paper waste streams. Stitching together multiple plies with a strong cyclone structure was eased by the high extensibility of this paper.Smurfit Kappa announced in September 2022 that it had reached an agreement to buy PaperBox, a packaging plant located in Saquarema (70 km east of Rio de Janeiro). This purchase significantly broadened Smurfit Kappa’s operational reach across Brazil as it already operates in Minas Gerais, Rio Grande do Sul and Ceará states.